Fanie Brink, Independent Agricultural Economist
"The Democratic Alliance (DA) will not make any further progress with its political aspirations because it cannot offer an alternative to the ANC's destructive economic policy of socialism imposed on the economy and the country on the basis of the communist doctrines. The party also does not understand at all that its policy of "social justice" and "inclusive growth" cannot be reached by any political party if the economy does not grow, as the ANC government has already shown very clearly,” says Fanie Brink, an independent economist.
He referred to the DA's conference that took place over the weekend during which the party's very clear policy of pure socialism was adopted.
The DA's latest economic policy described during the conference as a "social market economy", is purely playing with words for a system that exists nowhere in the world and which will simply cause the further socialist destruction of the economy. The chances are very good that the DA itself does not understand what they mean by a “social market economy”, but nevertheless wants to mislead and confuse the voters by still clinging to socialism that cannot create economic growth.
Any economic system that wants to create economic growth, jobs and prosperity will only be successful if it has certain characteristics. Firstly, a system that creates economic growth from the supply and demand side of the economy and driven by the profit motive, secondly, which allows prices to always bring the supply and demand back into a balance with as little government interference as possible, thirdly, which respects and protects the private property rights of people and fourthly, which allows the basic factors of production in the economy, such as land and raw materials, capital, labour and management, to move freely to other opportunities where their alternative earnings are greatest.
Brink says the time has come for political parties to realise that their political systems have historically destroyed the economies of many countries in the world and that economic growth must be a much more important priority than their political power obsession to govern which prevents their political goals from being achieved without economic growth.
The DA's political and economic policy will therefore be just as destructive as the policy of the ANC which will totally destroy the economy and the country within the next 3 to 4 years.
"The total illiteracy of virtually all politicians and political commentators on the most basic economic principles and the most economic reforms that they believe can create economic growth leaves much to be desired!"
According to the latest report from the Moody's credit rating agency, South Africa's economy will need to grow at least between 4% and 6% to stabilise the government debt by 2023, while the economy has only grown by less than 1% on average over the past 5 years.
Source: Statistics SA
It means that this target is by no means achievable and that the government's budget deficits will dramatically increase further and the state's debt burden will be equal to the annual real Gross Domestic Product (GDP) within the next few years.
Brink says the only solution to the weak economic growth is a total return to a capitalist economic system that has all the above characteristics and the only economic system that creates growth today in most countries in the world such as, among others, the USA, all European countries, Japan and China. This is the only “desperate and radical approach to economic redress and inclusion" and how an "economically just society" is possible in which “economic opportunities can be available to all.”
The question of "how the DA's policy can create economic growth" remained completely unanswered during the conference!
"There is, however, no possibility that the economy will grow again as long as the ANC is in power, while the DA has no chance of saving the economy and the country with its policy of ‘social justice’ and a 'social market economy.'" he said.
